Definition of Strategic Planning
The term strategic planning can be simply defined as “a process which directs an organization towards achievement and accomplishment of goals and objectives in an organized way in its changing marketing environment”.
Meaning of Strategic Planning
Strategic planning plays a vital role and holds a significant and primary position in the success of any organization. In the present era of tough competition no organization can ensure as well as secure its success without systematic strategic planning. It is required for smooth functioning of any organization. Strategic planning has two main components
- Strategic thinking focuses on company’s vision, mission and setting company goals and objectives,
- Tactical planning is related to the strategies for the implementation of action plan, organizing the recourses and directing the people.
So we can say that strategic management is a process, by which an organization formulates its objectives, develops improvement and achieving plan, makes organizational vision, mission and set targets. It includes evaluation of (HR or other Tangible) recourses, implementation of selected plan and evaluation of its performance. Let’s have a look in detail.
Defining Company Vision & Mission
Every company or business has a specific vision. Vision is an idealized state of a business. It is the big picture of what a particular company wants in the future and it encompasses company’s mission, values, objectives. The mission of a company is always is based on the vision and provides the pavement towards achievement of the goals and objectives. Simply we can say that “Mission describes the purpose of a particular organization or company while Vision is the ultimate future of that particular organization. To achieve company goals and objectives it’s obligatory that organization must set a vision and mission first. Mission is like the nuts and bolts of the vision of a company. Mission answer different questions like who you are, what and why of your business existence?
Company Goals and Objectives
After selecting the vision and mission of your business the next step is to select company goals and objectives of your business in the light of your vision and mission.
The objectives may be long or short term. Organizations must state the objectives in specific, quantifiable, measurable terms. Selected objectives should be ambitious as well as realistic. Selecting short term, intermediate and long term objectives are very important for strategic planning for any organization. Objectives serve as milestones for a particular business. Company goals and objectives are the broad results company wish to achieve over the long term. So company’s objective must flow naturally from company’s goals.
Company goals and objective should be "SMART", its mean that these should be
SMART is the measuring rod for selected goals and objectives.
Now summing up all together we can say that Strategic planning is like the life blood of an organization. As trees cannot flourish and grows without light same like that no organization can grow without defining vision, mission and set company goals and objectives to achieve them efficiently and effectively.